LOANS RECEIVABLE AND INVESTMENTS

6 Months Ended

Jun. 30, 2019

Loans Receivable And Investments [Abstract]

NOTE 5—LOANS RECEIVABLE AND INVESTMENTS

As of June 30, 2019 and December 31, 2018, we had $983.8 million and $756.5 million, respectively, of net loans receivable and investments relating to seniors housing and healthcare operators or properties. The following is a summary of our loans receivable and investments, net, including amortized cost, fair value and unrealized gains or losses on available-for-sale investments:



	Carrying Amount		Amortized Cost		Fair Value		Unrealized Gain
	(In thousands)
As of June 30, 2019:
Secured/mortgage loans and other, net	$	637,860	$	637,860	$	638,072	$	—
Government-sponsored pooled loan investments, net ⁽¹⁾	55,791		50,831		55,791		4,960
Total investments reported as secured loans receivable and investments, net	693,651		688,691		693,863		4,960
Non-mortgage loans receivable, net	59,570		59,570		57,669		—
Marketable debt securities ⁽²⁾	230,618		212,936		230,618		17,682
Total loans receivable and investments, net	$	983,839	$	961,197	$	982,150	$	22,642

As of December 31, 2018:
Secured/mortgage loans and other, net	$	439,491	$	439,491	$	425,290	$	—
Government-sponsored pooled loan investments, net ⁽¹⁾	56,378		49,601		56,378		6,777
Total investments reported as secured loans receivable and investments, net	495,869		489,092		481,668		6,777
Non-mortgage loans receivable, net	54,164		54,164		54,081		—
Marketable debt securities ⁽³⁾	206,442		197,473		206,442		8,969
Total loans receivable and investments, net	$	756,475	$	740,729	$	742,191	$	15,746

⁽¹⁾ Investments in government-sponsored pool loans have contractual maturity dates in 2023.

⁽²⁾ As of June 30, 2019, investments in marketable debt securities have contractual maturity dates in 2024 and 2026.

⁽³⁾ As of December 31, 2018, investments in marketable debt securities have contractual maturity dates in 2026.

2019 Activity

In April 2019, we purchased $5.0 million and $10.5 million of senior secured notes issued by a healthcare company which mature in 2024 and 2026, respectively. The 2024 and 2026 notes were purchased at a price of 102% and 98% of par, respectively, and have an effective interest rate of 8.1% and 8.3%, respectively. These investments are classified as available for sale and are reflected on our Consolidated Balance Sheets at fair value.

In June 2019, we provided new secured debt financing of $490 million to certain subsidiaries of Colony Capital, Inc. The London Inter-bank Offered Rate (“LIBOR”) based debt financing has a five-year term (inclusive of three one-year extension options) and an effective interest rate of 9.2% as of June 30, 2019. In connection with this transaction, our previous loan to certain subsidiaries of Colony Capital, Inc. of $282 million was paid in full and we recognized a gain of $0.5 million in income from loans and investments in our Consolidated Statement of Income.